CHENNAI: Industry bodies, unions of government employees and teachers and other organisations on Friday welcomed the State budget, terming it "growth-oriented," and thanked the Government for restoring several concessions to employees.

The Southern India Chamber of Commerce and Industry said the budget had given the much-needed impetus to industry. It hoped that value-added tax credit would be allowed, to enable industry to make products competitive.

The State Council of the Confederation of Indian Industry said the plan to establish a special economic zone in Virudhunagar district and revive the special economic zone at Nanguneri would promote industrial development in southern districts. It lauded the move to create another Anna University at Tirunelveli. The Federation of Indian Chambers of Commerce and Industry lauded the Government's efforts to contain fiscal deficit within three per cent of the GSDP through the Fiscal Responsibility Act with no fresh taxes.

The Madras Chamber of Commerce and Industry said the present allocation of nearly Rs. 500 crore for education appeared less. Attempts should have been made to triple it.

It thanked the Finance Minister for granting its request to treat industrial inputs in the same manner as was done under the sales tax regime.

The Hindustan Chamber of Commerce said the decision to list commodities taxable at 12.5 per cent as Part C of the First Schedule to the VAT Act would remove uncertainties over classification. It commended the Government for coming out with a broad spectrum of development schemes. The Chemical Industries Association appreciated the Government for conceding its request to reduce tax incidence on molasses used by industries as raw material and decreasing it to four per cent "non-VATable." This, along with the permission to start new sugar mills, augment distillery capacity and the incentive provided for sugar development, would prove beneficial to cane farmers and molasses/alcohol-based chemical industries.

The Industrial and Financial Reconstruction Association for Small and Tiny Enterprise expressed disappointment that there was no announcement extending the benefit of half per cent compounding VAT for turnover up to Rs. 50 lakh, to tiny and small-scale industrial units in the manufacturing and services sectors. It dubbed "innovative," the establishment of a permanent market fair at Kanyakumari to enable artisans to sell directly to tourists.

The Andhra Chamber of Commerce said many changes sought in the VAT structure through its representations had been made applicable with retrospective effect from January 1. The Tamil Chamber of Commerce welcomed the proposal to set up two shipyards in the private sector at Ennore and Cuddalore.

The All-India Trade Union Congress expressed disappointment over the absence of any policy statement on reopening of industrial units that had been closed down.

The All-India Confederation of Organisations for Persons with Mental Disability welcomed the move to establish special schools with residential facilities in all district headquarters.

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